We all spend an enormous amount on subscriptions without realizing it. Not only are the payments automatically sent, but it takes active effort — and acknowledging that you’ve been paying for something you don’t need — to cancel a subscription…which means it’s easier to do nothing than to cancel the direct debit.

I’ll tell you guys about a subscription I had to a service (gym membership). I signed up for it about 4 months ago to get the free trial and see if it was worthwhile, and it was pretty good — but it cost $100/month. After about a month, I knew I wasn’t getting the value I needed out of it (meaning I wasn’t going to the gym) — but I couldn’t bring myself to cancel it. I put it in my calendar to cancel, but the day would come and go and I just didn’t do it. Then I would receive their monthly newsletters and figured I needed to do something about that, but never did. When I finally cancelled it I had spent over $600.

Today’s tip, the A La Carte Method, is a way to avoid just that:

The A La Carte Method takes advantage of psychology to cut our own spending….cancel all the discretionary subscriptions you can: your magazines, annual music plan, cable tv — even your gym.

* Instead of paying for a ton of channels you never watch on cable, buy only the episodes you watch for $1.99 each off iTunes

* Buy a day pass for the gym each time you go (around $5-$10)

* Buy songs as you want them for $0.99 each from Amazon or iTunes

Total savings: $50 – $150

Last thing to do

Leave a comment on this post describing how much you’re saving with this tip and any unusual techniques you use to make this tip work.

Check back tomorrow or subscribe to our daily challenge emails and SMS to get them in your inbox & let us know how much you’re saving.

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About Shauna Rose

As well as being Head of Financial Services, Shauna is a Senior Financial Adviser with over 15 years experience. Her area of expertise is risk insurance for Small to Medium Enterprises specialising in Business Succession Planning. With this being a key strength it enables Shauna to understand the running of the business, implement best practice policies, provide strategic planning input, marketing, human resource management, compliance and business processes.

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In preparing this material, no account was taken of the objectives, financial situation and needs of any particular person. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances.